VL

Veralto Corporation stock research

Jun 28, 2024

FY2024 Q2

Veralto (VLTO) Gross Margin — Quarter Ended Jun 28, 2024

Revenue and gross profit both increased compared with the prior quarter, while cost of revenue rose less than proportionally, resulting in a slightly improved gross margin. Compared with the same quarter one year earlier, revenue was stable, gross profit was higher, cost of revenue was lower, and gross margin strengthened.

Gross margin takeaway

Quarter ended Jun 28, 2024 · FY2024 Q2

Revenue and gross profit both increased compared with the prior quarter, while cost of revenue rose less than proportionally, resulting in a slightly improved gross margin. Compared with the same quarter one year earlier, revenue was stable, gross profit was higher, cost of revenue was lower, and gross margin strengthened.

  • The gross margin improved relative to both the prior quarter and the year-ago quarter, driven by a combination of higher revenue and a slower increase in cost of revenue versus the prior quarter, and lower cost of revenue alongside steady revenue versus the year-ago period.
  • Relative to the prior quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin strengthened slightly. Compared with the same quarter one year earlier, revenue was broadly stable, gross profit was higher, cost of revenue was lower, and gross margin improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

60.1%

Gross profit

$774.0M

Revenue

$1.3B

Cost of revenue

$514.0M

Quarter-over-quarter change

+0.1 pts

Year-over-year change

+2.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 29, 2023$1.3B$723.0M$532.0M57.6%
Dec 31, 2023$1.3B$746.0M$542.0M57.9%
Mar 29, 2024$1.2B$747.0M$499.0M60.0%
Jun 28, 2024$1.3B$774.0M$514.0M60.1%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 29, 2024

+0.1 pts

Year-over-year change

Jun 30, 2023

+2.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improved relative to both the prior quarter and the year-ago quarter, driven by a combination of higher revenue and a slower increase in cost of revenue versus the prior quarter, and lower cost of revenue alongside steady revenue versus the year-ago period.

Relative to the prior quarter, revenue and gross profit were higher, cost of revenue was higher, and gross margin strengthened slightly. Compared with the same quarter one year earlier, revenue was broadly stable, gross profit was higher, cost of revenue was lower, and gross margin improved.

Monitor whether cost of revenue continues to decline year over year while revenue remains stable, as this trend directly supports gross margin expansion.